EY Insights: Sink or swim — the key to maintaining an ethically responsible business

Companies worldwide are battling to survive and grow in today’s challenging economic conditions. But even in this environment, driving growth while maintaining ethical business conduct is critical.

In tougher economic cycles, corrupt business practices may emerge as a seemingly easy way to short-term success but that is no way to win the race. In fact, in order to sustain long-term growth and success, companies need to rigorously develop, implement and enforce ethical business guidelines.

Ethical business practices aren’t simply the right thing to do or the smart way to build a business. In an age where a single social media post can snowball in seconds, businesses need to heed customer and investor demands for the highest levels of transparency and business ethics.

As a business owner, how do you create an ethical framework for your business? Management needs to set a clear tone from the top that unethical behaviour will not be tolerated. Things like clearly identifying corporate values, enforcing ethical guidelines and outlining clear consequences for disregarding these values can help foster an ethical culture. Management should also consider ethical business training for all employees, so each member of the organization understands how to respond to ethical dilemmas when they arise.

Setting up an ethics hotline and encouraging employees to use it to voice concerns is an easy way to ensure people have a platform to confidentially report conduct that may be unethical or illegal.

By implementing transparent business processes and practices, business owners can focus on growing their business and serving their clients, instead of fixing mistakes or responding to risks created by unethical business practices.

At EY, we’re committed to doing our part in building a better working world. We strive to create an ethical workplace by promoting our code of conduct in our day-to-day business activities. Our code of conduct draws on our shared values and provides a clear set of standards for our business conduct.

Any business can implement a similar code of conduct to help promote an ethical workplace. Consider the following guidelines:

1. Working with one another. You should build relationships based on a shared trust and confidence that everyone in your business is committed to doing the right thing both personally and professionally. It’s important that people are open and honest when communicating with one another.

2. Working with clients and others. No client, customer or external relationship should take priority over ethics, integrity and your reputation. When working with others your business should reject any unethical business practices.

3. Acting with professional integrity. Your business should always comply with laws, regulations and standards that apply to your business. Consider developing an ethics hotline within your business that employees can call when faced with sensitive ethical issues. Also consider developing document management and retention policies appropriate for your business, and never destroy or alter documents for any illegal or improper purpose.

4. Maintaining objectivity. Be alert for personal and business conflicts of interest and take immediate and appropriate steps to resolve or manage any conflicts that may arise. Your employees should never accept payment of any kind that could reasonably be viewed as unethical.

5. Respect for intellectual capital. It’s important to protect confidential information obtained from or relating to clients, customers or third parties as well as personal information about your people. Take proactive measures to safeguard documents, computers and anything else that may contain personal or confidential information.

The bottom line is business success in today’s market depends on being transparent, acting with integrity and committing to ethical behaviour consistent with the values of your organization. Your reputation depends on it. Taking this approach will help to ensure business growth and success, despite uncertain economic times.

Doris Stamml is EY’s chief legal counsel. She obtained her LLB from Osgoode Hall Law School and was called to the Ontario Bar in 1985. She joined EY’s General Counsel’s Office in 1988. Doris is also a member of the EY’s executive committee. Doris currently leads a group of eight lawyers who provide legal support on a wide range of issues including litigation, regulatory compliance and risk management, governance, contracts and policy matters, mergers and acquisitions, and employment law. Doris is a member of the Canadian Bar Association, Canadian Corporate Counsel Association and the Association of Corporate Counsel. Learn more about EY’s Global code of conduct. Follow us on twitter @EYCanada.

September’s Theme: HR

How important is employee loyalty to success?Barb Gamey, Cofounder, President and CEO, Payworks
Marty Parker, Chairman and CEO, Waterstone Human Capital
Alex Miller, president, Esri Canada
Greg Vermeulen, Founding director, Leaders For Non Profits, and Principal, Echinus Inc.
Susan Robinson, Partner and National Leader of their People and Organizational Change practice, EY.
How can a small company compete for talent?Alex Miller, president, Esri Canada
Barb Gamey, Cofounder, President and CEO, Payworks
Greg Vermeulen, Founding director, Leaders For Non Profits, and Principal, Echinus Inc.
Marty Parker, Chairman and CEO, Waterstone Human Capital
Susan Robinson, Partner and National Leader of their People and Organizational Change practice, EY.
How can a small company compete for talent?Alex Miller, president, Esri Canada
Barb Gamey, Cofounder, President and CEO, Payworks